When the Deals Start Coming That's A Clear Sign To Get A Financial Advisor
This article is written by Brian Malika, a Contributor Author at Startup Istanbul.
Barbaros Ozbugutu is the CEO of Iyzico, a Turkey-based startup offering the easiest way for accepting payments online.
After days of hard work building your start-up from scratch, luckily, the much-awaited deal gets sealed and now the investment capital is in your company’s bank account. Securing an investment fund could be the most rewarding moment in the life of an entrepreneur towards solving a particular social problem.
However, the awarding of an investment fund to a start-up could end up being more of a burden than an opportunity if the right management decisions are not made in good time.
Look at it this way; after receiving the investment fund like venture capital or so, many entrepreneurs are faced with the pressing roles to deliver what they have been passionately pitching to investors. Therefore, if entrepreneurs go ahead add to their already tight schedule the roles of managing the investment fund then chances are that they might be overwhelmed with work load, therefore, reducing the productivity of the start-up in the long run.
The above sentiments mean that its better if start-up founders that have been awarded an investment fund to consider hiring a financial advisor before the implementation process begins. By doing so, a financial advisor will not only ensure the professional handling of the investor capital but also give enough time for the start-up founders to concentrate on the nighty gritty details that surround the effective implementation of the business idea.
Just to ensure that you have a clear picture of what roles a financial advisor can offer to your start-up, I have dedicated the paragraph below to highlight more on this.
Accommodating a Financial Advisor.
First of all, you must understand that a financial advisor will be included in the daily running of the start-up business. And as such, there must be a clear tore of line to ensure that there is no conflict between the start-up technical team and the financial advisors in terms of roles and responsibilities.
Again, make sure to note that a financial advisor is not a start-up team that bears the vision of the business idea being worked on. This is so because the financial advisors are a company on their own offering financial management firms that require such services at a quoted fee for a specified period. You can actually get a financial advisor working on a couple of financial management projects in the same period of time.
On that note, the marketing of the start-up business idea through storytelling and other forms of communication to the public remains to be a role of the start-up team and this has nothing to do with the financial advisors on board.
Also, make sure that you hint to the investors way before the execution of the business idea begins that you will be bringing on board a financial advisor so that the terms of financial reporting can be agreed in good time. Sometimes the investors might not like the choice of the financial advisor that you bring on board as a Start-up and as such it might be necessary to just follow the investor’s recommendations.
The earlier you come to terms that financial management of venture capitals is an extra burden to the start-up founders and as such the services of financial advisors are necessary the better your start-up is poised to deliver better results.